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January 1, 2015 at 6:02 pm
I’m slightly confused about this…………when it says she earns a equivalent of a lump sum of 2,000, does this mean altogether for these 5 years she gets 2,000 or does it mean she get 2,000 every year for 5 years?
January 1, 2015 at 7:55 pm
I believe the question says that she earns the equivalent of $2,000 for each year – am I not correct?
January 1, 2015 at 8:53 pm
the question states “that the pension benefits which she will earn, for each of the next
five years, are the equivalent of a lump-sum on retirement of $2,000″ – I took this to mean that the total lump sum over 5 years she would receive is 2,000?
January 2, 2015 at 10:27 am
ok – so what do you understand by the word “each” in this comment? “for each of the next five years”
November 11, 2014 at 3:46 pm
Is the 10% corridor still in force and examinable, as per the notes in the lecture?
November 11, 2014 at 4:20 pm
No Daniel, the 10% corridor no longer exists. That’s an area that I need to refectory.
Unfortunately, I can’t record this before the December exams
November 11, 2014 at 6:44 pm
Thanks for the prompt reply. Your lectures are great.
The word “refectory” in your response made me laugh!! I think you need to “refectory” that. Lol!!
November 12, 2014 at 6:27 am
Automatic predictive texting! Of course, it should be “rerecord”
November 1, 2014 at 12:13 am
One of my company’s benefit for management staff is giving a “grant” called Long Term Incentive Plan (LTIP), which they will state in this grant letter how much they will pay you a lump sum in 3 years time with terms and condition. It will be “burn” if you resign within that period of 3 years. Grant is renewed every 3 years.
My Q (for my understanding of terminology of “Post Employment Benefits” as per IAS 19)
Does LTIP being defined as “post employmen benefit”?
My confusion-after completion of employment. Does that mean after resigning as well? Retiring-for me, no confusion here. I believe it should fit into this terminology. Am I correct for this?
Thank you in advance.
November 1, 2014 at 6:48 am
I don’t think this is an employee benefit under IAS 19
It sounds more like a share-based payment under IFRS 2 except there are no shares apparently involved.
I imagine the same rules apply calculate the total value involved. Divide by 3. Dr PorL by that amount for each of 3 years building up the obligation and, at the end of 3 years, settle the obligation.
Hope that helps
November 1, 2014 at 11:12 am
yes, your assumption of double entry is correct..
N Rudenko says
September 6, 2014 at 8:06 pm
Could you please clarify why it is a problem for a company when retired employees leave longer? Are these benefit plans contribute to the employees after they have retired?
September 6, 2014 at 8:35 pm
No, but if the company is paying the pension to its former employees, then the longer the retired employees live, the more years of pensions will have to be paid.
My parents and my aunt got almost as many years pension as they had worked ie they worked for 40 years and received pensions for 38 years.
The longer you live, the more benefits you will receive
September 22, 2014 at 4:29 pm
September 23, 2014 at 7:02 am
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